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MRK · NYSE · United States · Pharmaceutical Preparations
In shortMerck & Co., Inc. is profitable, generates cash and carries moderate debt, with revenue stable (+1.3% last year).
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | – | n/a |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 28.1% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 36.9% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | – | n/a |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 1.54× | 61/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.94× | 59/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | – | n/a |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | – | n/a |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | – | n/a |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 19.0% | 96/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 0.68× | 47/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 9.4% | 76/100 |
| Operating margin volatility | – | n/a |
Weight in the score: 20%
| Revenue growth, 3-year average | 3.1% | 34/100 |
|---|---|---|
| EPS growth, 3-year average | 8.4% | 67/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 48,704 | 59,283 | 60,115 | 64,168 | 65,011 |
| Cost of revenue | 13,626 | 17,411 | 16,126 | 15,193 | 16,382 |
| Gross profit | 35,078 | 41,872 | 43,989 | 48,975 | 48,629 |
| Research & development | 12,245 | 13,548 | 30,531 | 17,938 | 15,789 |
| Selling, general & admin | 9,634 | 10,042 | 10,504 | 10,816 | 10,733 |
| Interest expense | 806 | 962 | 1,146 | 1,271 | 1,357 |
| Pre-tax income | 13,879 | 16,444 | 1,889 | 19,936 | 21,067 |
| Income tax | 1,521 | 1,918 | 1,512 | 2,803 | 2,804 |
| Net income | 13,049 | 14,519 | 365 | 17,117 | 18,254 |
| Diluted EPS | $5.14 | $5.71 | $0.14 | $6.74 | $7.28 |
| Diluted shares (millions) | 2,538 | 2,542 | 2,547 | 2,541 | 2,507 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
Not computed: a required balance-sheet item is missing.
4/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works
Latest annual report: Jun 30, 2026 · Data updated Aug 7, 2026